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Multi Contract Market (Can someone please clarify?)

I'm sorry. I still don't understand.


Suppose there is a multi-contract market with two options.


Suppose both are priced at Option 1 50/50 and Option 2 50/50.


Suppose I buy No on both at 50 cents.


Market resolves to Option 1 = Yes and Option 2 = No.


Do I break-even or do I lose 5 cents???

1 Comment

You will lose five cents.

Fees are calculated separately for every contract.  You have a $0.50 profit on the winning contract, so you pay a $0.05 fee.  The loss on the second contract will not "offset" the profit on the first one, even if they are in the same market.

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